Explaining Canada-U.S. Differences in Annual Hours Worked
AbstractEmployed Canadians worked an average of 157 hours less per year than employed Americans during 1997-2004. This one month less per year spent on the job is a significant contributor to the difference in GDP per capita between Canada and the United States. This article provides a detailed examination of the factors underlying the Canada-United States gap in annual hours worked. We find that over 40 per cent of the gap can be explained by a higher propensity of Canadians to take full-weeks off, mainly for vacations. Furthermore, over a quarter of the intensity gap is explained by a higher incidence of part-time work in Canada, and much of this reflects the higher proportion of Canada's part-time workers who have difficulties finding full-time work. We find that Canada's higher union coverage rates and labour standards are more important factors to explain the hours gap than differences in marginal tax rates. Canada's less robust economy is also relevant. Finally, we find that highincome Canadians take considerably more weeks of vacation per year than their American counterparts and are less likely to work long work weeks.
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Bibliographic InfoArticle provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.
Volume (Year): 13 (2006)
Issue (Month): (Fall)
Find related papers by JEL classification:
- C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- D10 - Microeconomics - - Household Behavior - - - General
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